Sterling Holds Positive Momentum
The Pound Sterling continues to find forward momentum against both the Euro and the US Dollar. An outright majority for the Conservative Party is the likely outcome of next week's UK election, according to the latest poll. Currency strategists say that the removal of at least some of the uncertainty which has negatively impacted Sterling since 2016 is likely to result in increased interest in the currency. A win by the Tories should be enough to get the Prime Minister the outcome he wants, namely withdrawal of Britain from the EU trading bloc at the end of January. The Pound has gained about 10% against the Euro since August.
The GBP/USD was up at $1.3135, a gain of 0.2351% as of 11:10 am in London trade; the pair has in today's session, the pair has ranged from a low of $1.30998 to a peak of $1.31483. The EUR/GBP is trading down at 0.8439 Pence, a loss of 0.1585%, and off the earlier trough of 0.84299 Pence.
Euro Data Mixed Bag
In the Eurozone today, there was a mixed bag of data releases. In Germany, seasonally adjusted factory orders fell in October (month-over-month) to -0.4%, against analysts' prediction of a fall to 0.3% from the previous reading of 1.5%. In the Eurozone, retail sales figures were unexpectedly lower at 1.4% (annualized), against a forecast of 2.2%. The Eurozone's growth readings were predictably unchanged; Eurostat reported that 3rd quarter GDP was flat at 1.2% on an annual basis, and 0.2% on a quarterly basis. The EUR/USD was higher at $1.1088, up 0.1047%.